PLN Saves Rp1.02 T a Year After Procures Gas

The gas use allows PLN to be less dependent on HSD fuels for diesel-fueled power plants

Selasa, 28 Juni 2011, 12:44 Syahid Latif
An electricity worker repairs power lines in Jakarta
An electricity worker repairs power lines in Jakarta (PLN Jawa-Bali)

VIVAnews – The State Electricity Company (PLN) procured additional gas to supply plants in Kalimantan. The gas from PT Salamander Energy Limited has the potential that PLN can save fuel cost up to Rp1.02 trillion a year.

This was confirmed after the signing of the gas purchase agreement of Bangkanai field, Muara Teweh, Central Kalimantan between PLN and PT Salamander Energy Limited at PLN Head Office in Jakarta, Tuesday.

The press statement VIVAnews.com received says that PT Salamander will supply gas as much as 20 bbtud (billion british thermal unit per day) of volume. The gas price agreed upon by the two parties was US$4.79 per mmbtu with 3 percent per three years of escalation. Salamander Energy planned to supply gas from June 2013 to 2033.

The gas supply from Bangkanai field will be use to meet the gas demand of power plants in Kalimantan, especially South Kalimantan, Central Kalimantan and East Kalimantan.

Through this deal, PLN estimated the potential of saving fuel cost of up to Rp1.02 trillion a year, assuming the HSD (high speed diesel) price be Rp8,500 per liter as of now, by Rupiah’s exchange rate against the US Dollar of 8,600.

The gas use will also allow PLN to be less dependent on HSD fuels for diesel-fueled power plants, so that the production basic cost can be reduced.

PLN is optimistic that the electricity supply to South Kalimantan, Central Kalimantan and East Kalimantan will increase in line with the construction of several coal-fueled power plants. It is expected that the power plants will be able to start operating by 2016.

By then, the Bangkanai gas will be stored in compressed natural gas (CNG) form to supply primary energy to PLN plants, which are estimated to be able to produce power of up to 250 MW. The power will be used only for load peak in East Kalimantan, Central Kalimantan and South Kalimantan, that is between 5pm and 10pm Wita (Indonesian Eastern Time).

Moreover, the power capacity in those areas will also be supported with that of private power plants (IPPs) which are currently in construction stage and are expected to start operating by mid 2013 and supply 120 MW of power.

Translated by Indah Lestari

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